Transcript excerpt of Simon Sinek explaining the role of metrics and money in organizations. Sinek argues metrics are useful gauges but become harmful when treated as absolutes; rewards tied solely to target attainment can incentivize poor behavior. He frames money as fuel for a company (the car) whose primary purpose is to accomplish a cause beyond making profit.
Chapters
We are tangibly driven animals. Metrics are important to us. Targets and goals are important to us. And that's a good thing. Abstract is no good. It wasn't work. I mean, you can't run a marathon with no mile markers. It's actually unnerving. I need to know and be able to measure progress. But we have to understand the role that metrics play. Metrics help us understand speed and distance. Right. And they're not absolutes. It's to help us gauge. The problem is when they become absolute. So, for example, can I get the pad back? Is that allowed? I can do with that. So let's say somebody gives us a goal. They say if you hit this target, just. I'm a visual thinker. Sorry. Oh, that's fine. So let's say somebody gives us a goal. Thank you. Thanks. They say hit this target. Right. If you hit this target, you will get a bonus. Right. And so one person on the team is making solid progress, building good systems. Morale is really high. Very low turnover, and things are going pretty well. It's a good team. And at the end of 12 months, they didn't reach the goal. We don't give that person a bonus. By the way, it's arbitrary that it's 12 months because that's when we pay taxes. It could be anything. But versus somebody else on the team who, who they can't hold onto. Employees morale is terrible. They're begging, borrow and stealing. Who knows what they're doing? They drop the price. And on the right day, on the right time, look at that. They hit the goal and we give that person a bonus. And that sends a message to the rest of the organization, which is, we don't care how you got there as long as you got there. I think that the goal is important. It helps us measure and it helps us gauge. But if we miss the goal, we have to look at how we're doing, how we got there. And I think that's one of the things we don't consider. So how we get there, we'll manage the satisfaction. These people are very satisfied and love coming to work. These people, not so much. They might be making more money for now, but in the long term, these people are your better employees. And so it's not one or the other, it's both. And understand the role of money inside an organization. Money is fuel, and fuel is very important. I think money is. There's nothing wrong with money. It's just we have to understand the purpose of money. Right? So the company is the car and money is the fuel. So I don't care how amazing your just cause is and how wonderful your culture is, if you have no money, you don't go anywhere. Like you most, you might have bought the most beautiful car. You got no gas, you got nowhere to go. The purpose of a car is not to buy gas. The purpose of a company is not to make money. The purpose of a car is to go somewhere and fuel helps you get there. The purpose of a company is to accomplish something, to advance a greater cause, to contribute to society. And money will help you get there. Very necessary, very important. But it's not the reason we bought the car in the first place.
